Graco Inc. (NYSE: GGG) today announced results for the quarter and year ended December 28, 2012.
Summary$ in millions except per share amounts
|Quarter Ended||Year Ended|
|Dec 28,||Dec 30,||%||Dec 28,||Dec 30,||%|
Diluted Net Earnings per Common Share
- Record sales in the fourth quarter included 15 percentage points of growth from Powder Finishing operations acquired in April 2012, while legacy business increased 3 percent.
- Contractor segment sales for the quarter were up 13 percent, driven by growth in the Americas.
- Fourth quarter gross margin rates for legacy operations improved by more than 2 percentage points over the comparable period last year.
- Cash flow from operations for the year remained strong at $190 million, 17 percent higher than last year.
"Fourth quarter performance for Graco was strong, despite ongoing weakness in Europe and Asia," said Patrick J. McHale, President and Chief Executive Officer. "Growth in the Americas was broad based, led by our Contractor segment, reflecting a construction market that is on the path to recovery. European sales were flat in the quarter, when compared to the prior year on a constant currency basis and excluding acquisitions, with growth in the emerging markets of Eastern Europe offset by continued strains in Southern Europe. Activity levels in Asia Pacific also remain soft, with particular weakness in the mining sector served by our Lubrication segment. Outstanding factory-level execution and the acquisition of the Gema Powder Finishing business contributed significantly to our increased earnings in the fourth quarter. I would like to thank all of our employees worldwide for their dedication to Graco and for constantly striving to improve our operations."